On June 10, 2011, the AMF published three documents related to the draft framework governing the Money-Services Businesses Act:
- The Regulation under the Money-Services Businesses Act;
- The Regulation respecting Fees and Tariffs;
- The Policy Statement to the Money-Services Businesses Act.
Regulation under the Money-Services Businesses Act
This draft Regulation stipulates some of the obligations related to the issue of a licence, including with respect to the form and content of licence applications, additional documents that need to be filed at the time of the licence application as well as time limits. It also specifies the form and content of the books, registers and records that a money-services business must maintain and rules relating to their preservation. The cases, conditions and manner in which the identity of customers and co-contracting parties must be verified are also specified.
Regulation respecting Fees and Tariffs
This draft Regulation stipulates the fees and tariffs applicable to money-services businesses. They include the fees and tariffs payable for the issue of a licence.
Policy Statement to the Money-Services Businesses Act
The Policy Statement sets out how the AMF interprets and intends to apply the requirements under the Act. It explains in plain language the various money services and certain criteria to determine whether a money-services business is required to apply for a licence. These documents are available under Public Consultations.
Legislative, regulatory or administrative measures
In 2004, the Québec government announced a broad offensive against tax-related economic and financial crime. A committee set up for this purpose, of which the Autorité des marchés financiers (the "AMF") was a member, was mandated to develop a profile of tax-related economic and financial crime in Québec. The committee was also mandated to identify legislative, regulatory or administrative measures which would help suppress this type of crime.
Money-Services Businesses Act
One of the results of this initiative was the Money-Services Businesses Act, which was assented to on December 10, 2010. The AMF will be responsible for administering this Act, which will come into force on a date to be determined.
Businesses affected by the Act
The Money-Services Businesses Act requires that any person or entity who operates a money-services business for remuneration must hold a licence issued by the AMF. The following are considered to be money services:
- currency exchange;
- funds transfer;
- issue or redemption of travellers cheques, money orders or bank drafts;
- cheque cashing;
- operation of ATMs.
Persons or entities who operate a money services business but who are already governed by certain other laws (such as banks, credit unions and insurers) will not be subject to the requirements of the new Act.
The AMF’s role
The Money-Services Businesses Act allows the AMF to exchange information with Revenu Québec This link will open in a new window and various police forces. It also allows the AMF to conduct inspections and investigations.
Finally, the Money-Services Businesses Act requires that the AMF maintain a public register of licence-holding money services businesses.